Multiple Choice
A consumer has two basic choices in making a trip: rent a car for $30.00 a day and spend two days of travel to the destination, or spend $400 for an airplane ticket and fly to the destination in two hours. The marginal utilities of the car rental and the airline ticket are the same. The consumer values time at $5 an hour. The rational consumer will most likely
A) rent a car.
B) buy an airline ticket.
C) find the full cost of the two modes to be equal.
D) not make the trip.
Correct Answer:
Verified
Correct Answer:
Verified
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